CONSOLIDATED FINANCIAL STATEMENTS Pdfs/Annual Pdfs... · Management in accordance with the...
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Auditor’s Report on the Consolidated Financial Statements of Gateway Distriparks Limited
CONSOLIDATED FINANCIAL STATEMENTS
The Board of Directors of Gateway Distriparks Limited
1. We have audited the attached Consolidated Balance Sheet of Gateway Distriparks Limited (the “Company”) and its subsidiaries, hereinafter referred to as the “Group” (refer Note 1 (ii) (b) to the attached Consolidated Financial Statements) as at March 31, 2012, the related consolidated Statement of Profit and Loss and the consolidated Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These consolidated financial statements are the responsibility of the Company’s Management. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. We did not audit the financial statements of three subsidiaries included in the consolidated financial statements, which constitute total assets of Rs. 1,463,716,559 and net assets of Rs. 1,330,927,401 as at March 31, 2012, total revenue of Rs. 635,187,938, net profit after tax of Rs. 63,511,668 and net cash outflows amounting to Rs. 154,149,886 for the year then ended. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us, and our opinion on the consolidated financial statements to the extent they have been derived from such financial statements is based solely on the report of such other auditors.
4. We report that the consolidated financial statements have been prepared by the Company’s Management in accordance with the requirements of Accounting Standard (AS) 21 - Consolidated Financial Statements notified under sub-section 3C of Section 211 of the Companies Act, 1956.
5. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial information of the components of the Group as referred to above, and to the best of our information and according to the explanations given to us, in our opinion, the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India:
(a)in the case of the consolidated Balance Sheet, of the state of affairs of the Group as at March 31, 2012;(b)in the case of the consolidated Statement of Profit and Loss, of the profit of the Group for the year ended on that date: and(c)in the case of the consolidated Cash Flow Statement, of the cash flows of the Group for the year
ended on that date.
For Price WaterhouseFirm Registration Number: 301112EChartered Accountants
Place: Mumbai Uday ShahDate: May 26, 2012 Partner
Membership Number F-46061
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Significant Accounting Policies Note No. 1
The Notes referred to herein above form an integral part of these financial statements.
In terms of our report of even date.
For Price Waterhouse For and on behalf of the Board of Directors
Firm Registration No. 301112E
Chartered Accountants
Gopinath Pillai Prem Kishan GuptaChairman Deputy Chairman and
Uday Shah Managing DirectorPartnerMembership Number F-46061
R. KumarDeputy Chief Executive Officer and Chief Finance Officer cum Company Secretary
Place: Mumbai Place: MumbaiDate: May 26, 2012 Date: May 26, 2012
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2011-2012 2010-2011Rs. Rs.
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GATEWAY DISTRIPARKS LIMITED
1 Significant Accounting Policies:
Notes annexed to and forming part of the Consolidated Financial Statements for the year endedMarch 31, 2012
General Information
Gateway Distriparks Limited (the ‘Company’) and its subsidiary companies are engaged in business of Container Freight Stations / Inland Container Depots at various locations , transportation of cargo by containers on Indian Railways Network, road transportation of containers / cargo / chilled and frozen products and operating storage facilities at cold stores at various locations in India. The Company was incorporated on April 6, 1994. The Company's equity shares are listed in Bombay Stock Exchange and National Stock Exchange.
The Container Freight Stations are located at Navi Mumbai, Chennai, Vishakhapatanam and Kochi.
The Company's Subsidiary Gateway Rail Freight Limited operates Inland Container Depots, which are located at Garhi Harsaru (Gurgaon), Sahnewal (Ludhiana), Asaoti (Faridabad) and Kalamboli (Navi Mumbai).
The rakes carrying containers with cargo (Exim/ Domestic / refrigerated / empties) are operated on the Indian Railways network. Trailers are used to carry containers and cargo to the location of the premises of the customers.
The Company's subsidiary Snowman Logistics Limited operates storage facilities at cold stores at various locations in India. Chilled and frozen products are stored on behalf of customers at these cold stores and are transported by refrigerated trucks to various locations in India.
(I) Basis of Accounting:
The Consolidated Financial Statements of ‘the Company and its subsidiary companies, Gateway East India Private Limited, Gateway Distriparks (South) Private Limited, Gateway Rail Freight Limited, Gateway Distriparks (Kerala) Limited, Container Gateway Limited (subsidiary company of Gateway Rail Freight Limited) and Snowman Logistics Limited (collectively referred to as “the Group”) are prepared to comply in all material aspects with all the applicable accounting principles in India, the Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956, of India (“the Act”) and the relevant provisions of the Act to the extent possible in the same format as that adopted by the Company for its separate financial statements..
(ii) Principles of consolidation:
(a)The consolidated financial statements have been prepared on the following basis:
- The financial statements of the Company and its Subsidiary Companies have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses.
- Intra-group balances and intra-group transactions and resulting profits/ losses are eliminated in full.
- The consolidated financial statements have been prepared using uniform accounting policies for
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like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as the Company’s separate financial statements.
-The excess cost of the Company of its investment in the subsidiaries is recognised in the financial statements as goodwill on consolidation. The excess of the Company’s portion of equity and reserves of the subsidiaries at the time of its investment is treated in the financial statements as capital reserve.
(b) The subsidiary companies considered in the consolidated financial statements are:
- Rail Siding, which is being amortised over a period of twenty years based on useful life estimated by the Management;
- Reach Stackers and forklifts (included in Yard Equipments) and containers are depreciated over a period of ten years;
- Computer Software, having an enduring benefit is being depreciated over three to five years based on evaluation of useful life by the Management;
- Upfront fees of Punjab Conware’s Container Freight Station (“CFS”), is being amortised over the balance period of the Operations and Management Agreement of the CFS with effect from July 1, 2007 (balance life as on March 31, 2012 is 9 years and 10 months); and
- Technical Know-How, which is being amortised over a period of agreement (i.e. five years) from the date of technology being put to use or over balance period of agreement from the date of commencement of the commercial operations, whichever is later;
- Rail License fees paid towards concession agreement, which is being amortised over the period of agreement (i.e. twenty years) from the date of commencement of commercial operations (balance life as on March 31, 2012 are Fifteen years and two months); and
- Additions/ construction of Building, Electrical Installations, Furniture and Fixtures and Office Equipments at Punjab Conware CFS is being amortised over the balance period of the Operations and Management Agreement of the CFS with effect from July 1, 2007.
(c) Assets individually costing less than Rs. 5,000 are fully depreciated in the year of acquisition/ construction.
(d) Goodwill on consolidation is not amortised but it is tested for impairment at the end of every financial year.
(e) Assessment is done at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible) may be impaired. For the purpose of assessing impairment, the smallest identifiable group ofassets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets, is considered as a cash generating unit. If any such indication exists, anestimate of the recoverable amount of the asset/ cash generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to the recoverable amount. Recoverable amount is higher of an asset’s or cash generating unit’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased.
(iv) Incidental Expenditure Pending Capitalisation:
Incidental and Pre-operative Expenditure Pending Capitalisation/ Allocation represents expenses incurred prior to commencement of Container Freight Station (CFS) of Gateway Distriparks (Kerala) Limited and Container Gateway Limited which will be allocated to the cost of the fixed assets on commencement of operations.
(v) Borrowing Cost:
Borrowing costs directly attributable to the acquisition/ construction of an asset are apportioned to the cost of the Tangible Assets up to the date on which the asset is put to use/ commissioned.
(vi) Investments:
Investments that are readily realisable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long term investments. Current investments are carried at cost or fair value, whichever is lower.
Name of the Company
Gateway East India Private Limited (GEIPL)
Gateway Distriparks (South) Private Limited
Gateway Rail Freight Limited (GRFL)
Gateway Distriparks (Kerala) Limited (GDKL)
Snowman Logistics Limited (SLL)
Container Gateway Limited (CGL)
Country of Incorporation
India
India
India
India
India
India
% voting power as at March 31, 2012
100% (Shares allotted / acquired on November 23, 2004, on November 22, 2006, on June 3, 2008 and on February 4, 2009)
100% (Shares acquired on December 1, 2004)
97.57% (Shares allotted / acquired on November 21, 2006, on March 17, 2008, on October 24, 2008, on April 6, 2009, on December 28, 2010 and on April 27, 2011)
60% (Shares allotted on March 5, 2007 and on February 23, 2012)
52.19% (Shares allotted/ acquired on November 22, 2006 and on December 17, 2009)
51% held by subsidiary company, GRFL (Shares allotted/ acquired on October 27, 2010)
% voting power as at March 31, 2011
100% (Shares allotted / acquired on November 23, 2004, on November 22, 2006, on June 3, 2008 and on February 4, 2009)
100% (Shares acquired on December 1, 2004)
97.27% (Shares allotted / acquired on November 21, 2006, on March 17, 2008, on October 24, 2008, on April 6, 2009 and December 28, 2010)
60% (Shares allotted on March 5, 2007)
52.19% (Shares allotted/ acquired on November 22, 2006 and on December 17, 2009)
51% held by subsidiary company, GRFL (Shares allotted/ acquired on October 27, 2010)
(iii) Tangible and Intangible Assets and Depreciation/ Amortisation:
(a) Tangible and Intangible Assets are stated at cost of acquisition or construction less accumulated depreciation/ amortisation and accumulated impairment losses, if any. The Group capitalises all costs relating to theacquisition, installation and construction of Tangible and Intangible Assets, up to the date when the assets are ready for commercial use. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the Statement of Profit and Loss. Losses arising from theretirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.
(b)Depreciation on additions/ deletions to Tangible and Intangible Assets is calculated on pro-rata basis from the month of such additions/ deletions. The Group provides depreciation on straight-line method at the rates specified under Schedule XIV (revised) to the Act or based on useful life whichever is higher, except for:
- Leasehold land, which is being amortised over the lease period;
- Leasehold Building, which is being amortised over a period of twenty four years;
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(vii) Foreign Currency Transactions:
Initial Recognition
On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
Subsequent Recognition
As at the reporting date, non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. All non-monetary itemswhich are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.
All monetary assets and liabilities in foreign currency are restated at the end of accounting period. With respect to long-term foreign currency monetary items, from April 1, 2011 onwards, the Group has adoptedthe following policy:
• Foreign exchange difference on account of a depreciable asset, is adjusted in the cost of the depreciable asset, which would be depreciated over the balance life of the asset
• In other cases, the foreign exchange difference is accumulated in a Foreign Currency Monetary Item Translation Difference Account, and amortised over the balance period of such long term asset/ liability
A monetary asset or liability is termed as a long-term foreign currency monetary item, if the asset or liability is expressed in a foreign currency and has a term of 12 months or more at the date of origination of the asset or liability. Refer note 12(j) for the effect of change in accounting policy.
Exchange differences on restatement of all other monetary items are recognised in the Statement of Profit and Loss.
(viii) Employment Benefits:
(a) Defined Contribution Plan
Contribution towards provident fund and Pension Scheme for employees is made to the Regulatory Authorities which are recognised by the Income Tax Authorities and administered through appropriate authorities, where the Group has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Group does not carry any further obligations, apart from the contributions made on a monthly basis.
(b) Defined Benefit Plan
The Group provides for gratuity, a defined benefit plan (the “Gratuity Plan”) covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment. The gratuity scheme is funded throughComprehensive Gratuity Policy - cum - Group Term Life Insurance Policy from Tata AIG Life Insurance Company Limited and Life Insurance Corporation of India Limited, except for employees of Punjab Conware’s CFS, the operations wherein are taken over by the Company under Operations and Management Agreement, Gateway Distriparks (Kerala) Limited, Container Gateway Limited, Gateway Distriparks (South) Private Limited and Gateway Rail Freight Limited. The Company’s liability is actuarially determined by an independent actuary (using the Projected Unit Credit method) at the end of each year. Actuarial losses/ gains are recognised in the Statement of Profit and Loss in the year in which they arise.
(c) Other Employee Benefits
Compensated Absences: Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.
Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year end are treated as other long term employee benefits. The Group’s liability is actuariallydetermined by an independent actuary (using the Projected Unit Credit method) at the end of each year. Actuarial losses/ gains are recognised in the Statement of Profit and Loss in the year in which they arise.
(d) Termination Benefits:
Termination benefits in the nature of voluntary retirement benefits are recognised in the Statement of Profit and Loss as and when incurred.
(ix) Revenue Recognition:
(a) Income from Container Handling, Transport and Storage are recognised on delivery of the container/ cargo. Income from Ground Rent is recognised for the period the container is lying in the Container Freight Station/ Inland Container Depot. However, in case of long standing containers, the Income from Ground Rent is not accrued for a period beyond 60 days on a consistent basis as per the prevailing business practice. Income from Rail and Road transportation are recognised on completion of respective services and as per the terms of the contract. Income from operations are recognised net of trade discounts, rebates, sales taxes and service tax.
(b) Income from auction sales is generated when the Group auctions long-standing cargo that has not been cleared by customs. Revenue and expenses for Auction Sales are recognised when auction is completed after necessary approvals from appropriate authorities are obtained. Auction Sales include recovery of the cost incurred in conducting auctions, customs duties on long-standing cargo and accrued ground rent and handling charges relating to long-standing cargo. Surplus, out of auctions, if any, after meeting all expenses and the actual ground rent, is credited to a separate account ‘Auction Surplus’ and is shown under the head 'Other Current Liabilities’. Unclaimed Auction Surplus, if any, in excess of one year is written back as ‘Income’ in the following financial year.
(c) Interest: Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.
(x) Taxes on Income:
(a) Current Taxation
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the period. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing in the respective jurisdictions.
(b) Deferred Taxation
Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using the tax rates and tax laws thathave been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the Group reassesses unrecognised deferred tax assets, if any.
(c) Minimum Alternate Tax Credit
Minimum Alternative Tax credit is recognised as an asset only when and to the extent there is convincing evidence that the Group will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Group will pay normal income tax during the specified period.
(d) Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred taxassets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against
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liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate totaxes on income levied by the same governing taxation laws.
(xi) Employees’ Stock Option Scheme:
Equity settled stock options granted under “ESOP Scheme” are accounted for as per the accounting treatment prescribed by Employee Stock Option Scheme and Employee Stock Purchase Guidelines, 1999, issued by Securities and Exchange Board of India and the Guidance Note on Employee Share-based Payments issued by the Institute of Chartered Accountants of India. The intrinsic value of the option being excess of market value of the underlying share immediately prior to date of grant over its exercise price is recognised as deferred employee compensation with a credit to employee stock option outstanding account. The deferred employee compensation is charged to Statement of Profit and Loss on straight line basis over the vesting period of the option. The options that lapse are reversed by a credit to employee compensation expense, equal to the amortised portion of value of lapsed portion and credit to deferred employee compensation expense equal to the unamortised portion.
(xii) Provision for doubtful debts
The provision for doubtful debts reflects the Management’s best estimate of probable losses inherent in the accounts receivable balance. The Management primarily determines the allowance based on the aging of accounts receivable balances and historical write-off experience, net of recoveries.
(xiii) Provisions and Contingent Liabilities
Provisions: Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligationand there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are notdiscounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or moreuncertain future events not wholly within the control of the Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliableestimate of the amount cannot be made, is termed as a contingent liability.
(xiv) Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease.
(xv) Inventories
Inventories are stated at lower of cost and net realisable value. Cost means only the purchase cost of the goods. Net Realisable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to record the sale.
(xvi) Earnings per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earningsconsidered in ascertaining the Group’s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equityshares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity sharesoutstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted averagenumber of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
GATEWAY DISTRIPARKS LIMITED
Consolidated Notes annexed to and forming part of the Financial Statements for the year ended March 31, 2012
Particulars 31.03.2012 31.03.2011
2. Share Capital
Authorised:
125,000,000 (Previous year: 125,000,000) Equity Shares of Rs. 10 each 1,250,000,000 1,250,000,000
Issued, Subscribed and Paid-Up:108,278,109 (Previous year: 107,999,832) Equity Shares of Rs. 10 each, fully paid-up 1,082,781,090 1,079,998,320
1,082,781,090 1,079,998,320
A. Reconciliation of the number of shares:
Shares at the beginning:
Add: Shares issued on exercise of Employee Stock Options [Refer Note 2(B)]
Number of Shares at the end:
Number of Shares
107,999,832
278,277
108,278,109
Rs.
1,079,998,320
2,782,770
1,082,781,090
Number of Shares
107,904,901
94,931
107,999,832
Rs.
1,079,049,010
949,310
1,079,998,320
B. Details of Shares allotted during the year on exercise of Employee Stock Options:
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C. Rights, Preferences and Restrictions attached to Shares:
The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per equity share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
D. The Employee Stock Option Committee at its meeting held on April 26, 2011, granted share warrants entitling options for 363,000 equity shares of face value of Rs. 10 per equity share to the eligible employees of the Company and its Subsidiary Companies at an exercise price of Rs. 95.72 per equity share. The warrant holders shall be eligible for exercising the options to subscribe to the equity shares on graded basis after a minimum exercise period of 1 year from April 27, 2011 i.e. the date as specified in the warrant at the time of allotment.
E. Details of Shareholders holding more than 5% shares as at March 31, 2012:
Promoters and Promoter Group:
Prism International Private Ltd.
Windmill International Pte. Ltd.
KSP Logistics Ltd.
Parameswara Holdings Ltd.
Mr. Prem Kishan Gupta
Mr. Sat Pal Khattar
Mr. Gopinath Pillai
Mr. Ho Peng Cheong
Mr. Arun Agarwal
Others:
FID Funds (Mauritius) Limited
Life Insurance Corporation of India
Name of Shareholder
24,087,894
5,475,187
3,675,000
2,983,500
3,098,749
3,300,000
741,000
262,500
125,000
8,591,235
5,678,482
22.25
5.06
3.39
2.76
2.86
3.05
0.69
0.24
0.11
7.93
5.24
24,087,894
5,475,187
3,675,000
2,983,500
3,098,749
3,300,000
741,000
262,500
125,000
8,591,235
5,859,292
22.30
5.07
3.40
2.76
2.87
3.06
0.69
0.24
0.11
7.95
5.43
No. of Shares % of Holding No. of Shares % of Holding
31.03.2012 31.03.2011
F. Aggregate number of Equity Shares allotted as fully paid-up by way of bonus shares (during 5 years immediately preceding March 31, 2012) are as follows:
No. of shares
Year ended….. Mar 31, 2012 Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Mar 31, 2008
Equity Shares allottedas fully paid-up bonus sharesby way of capitalisation ofSecurities Premium Account - - - - 23,091,775
G. Aggregate number of Equity Shares bought back (during 5 years immediately precedingMarch 31, 2012) are as follows:
No. of shares
Year ended….. Mar 31, 2012 Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Mar 31, 2008
Equity Shares bought backby way of utilisingSecurities Premium Account - - - 7,883,412 -
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GATEWAY DISTRIPARKS LIMITED
Notes annexed to and forming part of the Financial Statements for the year ended March 31, 2012
H. Employee Stock Option Plan: Refer Notes 1(xi) and 2(D)
Pursuant to the resolution passed by the Shareholders at the Annual General Meeting held on September 14, 2005, the Company had introduced new ESOP Scheme for eligible Directors and employees of the Company and its Subsidiary Companies.
Particulars ESOP Plan I ESOP Plan II ESOP Plan III ESOP Plan IV ESOP Plan V
Date of meeting of ESOP Committee September July January January April/ Board of Directors, granting the options 15, 2005 20, 2006 30, 2008 29, 2010 26, 2011
Maximum grant of options by ESOP Committee / Board of Directors (No. of Equity Shares of Face value Rs. 10 each) 240,000 311,750 306,875 345,000 363,000
Adjustment for issue of Bonus shares, in the ration of 1 new equity share for every 4 existing shares held in the Company, made on August 4, 2007 (Equity Shares) 24,798 65,812 - - -
Vesting period: Options to vest on a graded basis after a minimum exercise September July January January Aprilperiod of 1 year from 16, 2005 21, 2006 31, 2008 30, 2010 27, 2011
Exercise Period Three years from the date of vesting, on graded basis.
Exercise Price (including Share Premium above Face Value Rs. 10 per share) Rs. 163.64 per Rs. 136.56 per Rs. 92.92 Rs. 99.92 Rs. 95.72
share (at the share (at the per share per share per sharetime of grant time of grant of options) of options)Rs. 130.92 per Rs. 109.25 pershare (after share (afteradjustment for adjustment forBonus issue) Bonus issue)
Options outstanding as on March 31, 2012 (No. of Equity Shares) - 1,313 3,000 126,340 359,000
Date of Closing Market Price on National Stock Exchange for September July January January AprilComputation of Fair Value: 14, 2005 19, 2006 29, 2008 28, 2010 25, 2011
Method of Accounting and The excess of Fair Value (Closing Market Price on National Stock Exchange given Intrinsic Value: above) of the underlying equity shares on the date of the grant of stock options
over the exercise price of the options is amortised over the vesting period.
The details of movement in ESOP plans are given below:
(Figures in brackets represents previous year.)
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No. of Equity Shares
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(a) Nature of Security:
(i) Vehicle Finance Loan from HDFC Bank of Rs. 121,556,456 (Previous year: Rs. 104,377,284) are secured by way of hypothecation of the Company's Commercial Vehicles (Trailors).
(ii) Vehicle Finance Loan from Reliance Capital Limited of Rs. Nil (Previous Year: Rs. 29,973,358) was secured by way of hypothecation of trailors purchased against the same and Corporate Guarantee of Gateway Distriparks Limited, the Holding Company, which have been fully pre-paid in August 2011. The Company is in process of satisfaction of charge on Vehicle finance loan.
(iii)Term Loan from HDFC Bank of Rs. 10,000,000 (Previous Year: Rs. 10,000,000), cash credit and Buyers' Credit from HDFC Bank of EURO 620,000 (Rs. 42,674,600) (Previous Year: Rs. Nil) and USD 1,278,285 (Rs. 65,806,312) [Previous Year: USD 1,278,255 (Rs. 56,819,768)] is secured by first pari passu charge on all the assets (fixed and current, present and future) of the Company, the whole of the Company's consumables stores and spares and such other movables, including book debts, bills whether documentary or clean, outstanding monies and receivables both present and future, in or about all the Hypothecator's premises and godowns situated at Garhi (Haryana), Asaoti, Deeg and Piyala (Haryana), Debit Authority Letter with undertaking to fund losses or provide funds to the Company in case of inadequate cash flows and Corporate Guarantee of Gateway Distriparks Limited, the Holding Company.
(iv) Term Loan from GE Money Financial Services Private Limited of Rs. 899,250,000 (Previous Year: Rs. 1,008,250,000) is secured by first pari passu charge on all movable operating assets, intangible assets, assignment of all permits, licences, approvals, and immovable properties, book debts, insurance policies, pledge of equity shares of Gateway Rail Freight Limited held by Gateway Distriparks Limited and Corporate Guarantee of Gateway Distriparks Limited, the Holding Company.
(v) Buyers' credit facility of EURO 960,000 (Rs. 66,220,800) [Previous year: EURO 960,000 (Rs. 61,255,200)] is secured by first and exclusive charge on the fixed and movable assets of the Company.
(vi)Buyers' Credit from ICICI Bank of USD 1,255,000 (Rs. 64,607,400) [Previous Year: USD 1,255,000 (Rs. 55,784,750)] is secured by first pari passu charge in favour of the Bank on the Company's entire movable fixed assets (both present and future) and unconditional and irrevocable Corporate Guarantee of Gateway Distriparks Limited, the Holding Company.
(b) Terms of Repayment:
(I) (a) Loans for 80 Trailers are repayable in 35 Equal monthly installments between November 1, 2010 to September 1, 2013 along with interest of 9.20% per annum on reducing monthly balance.
(b) Loans for 20 Trailers are repayable in 35 Equal monthly installments between November 5, 2010 to September 5, 2013 along with interest of 9.20% per annum on reducing monthly balance.
(c) Loans aggregating Rs. 13,785,672 is repayable in 35 Equal monthly installments between June 1, 2011 to April 1, 2014 along with interest of 11.10% per annum on reducing monthly balance.
(d) Loans aggregating Rs. 34,244,103 is repayable in 35 Equal monthly installments between February 20, 2012 to December 20, 2014 along with interest of 11.25% per annum on reducing monthly balance.
(e) Loans aggregating Rs. 15,373,067 is repayable in 47 Equal monthly installments between August 15, 2011 to June 15, 2015 along with interest of 11.10% per annum on reducing monthly balance.
(ii) The Term Loan is repayable within 8 years with 2 years moratorium for the first disbursement in 24 Quarterly Installments of Rs. 416,667 start from February 2013 @ 10.49% per annum. Buyers' Credit of Rs. 65,806,312 is repayable on January 20, 2014. Buyers' Credit of Rs. 42,674,600 is repayable on February 22, 2013, however, it can be further extended up to February 22, 2015. The interest rate is LIBOR + 2.50% p.a.
(iii) The Term Loan is repayable in 40 Quarterly Installments of Rs. 27,250,000 started from September 2010. Interest Rate Charged by GE Money Financial Services Private Limited is based on CP Benchmark Rate and fluctuates between 11% - 12% per annum by reducing balance method.
(iv) Date of repayment of Buyers' Credit from a bank is June 15, 2012, which can be extended up to June, 2013. The Interest rate is LIBOR + 3.50% per annum.
(v) Buyers' Credit from ICICI Bank of Rs. 45,559,800 is repayable on April 6, 2012 and Rs. 19,047,600 is repayable on April 12, 2012. The interest rate is LIBOR + 2.50% p.a.
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Represents estimates made for probable liabilities arising out of pending assessment proceedings with various Government Authorities and claims against the Company not acknowledged as debts that are expected to materialise in respect of matters in litigation. The information usually required by Accounting Standard 29 – “Provisions, Contingent Liabilities and Contingent Assets”, notified under Section 211(3C) of the Act, is not disclosed on grounds that it can be expected to prejudice the interests of the Company. The timing of the outflow with regard to the said matter depends on the exhaustion of remedies available to the Company under the law and hence, the Company is not able to reasonably ascertain the timing of the outflow.
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